When it comes to exporting goods and services, there are two main types of export trade: general export trade and cross-border e-commerce (CBEC) trade. What's the difference between the two? This blog post will explore the differences between general export trade and CBEC trade, and highlight the benefits of each type of export.
General Export Trade
General export trade is the traditional way of exporting goods and services. In this type of export trade, businesses sell their products or services to foreign buyers through intermediaries such as trading companies, agents, or distributors. The main advantage of general export trade is that it provides businesses with a great deal of control over their products and how they are sold. However, the downside of general export trade is that it can be more expensive and time-consuming than CBEC trade.
Cross-border e-commerce (CBEC) Trade
Cross-border e-commerce (CBEC) trade, on the other hand, is a relatively new way of exporting goods and services. In CBEC trade, businesses sell their products and services online to buyers in foreign markets. The goods and services are then delivered to the buyers via postal or courier services.
There are several benefits to using CBEC trade to export goods and services. First, CBEC trade is often much faster than general export trade. This is because the goods and services are delivered electronically, rather than physically. Second, CBEC trade can be much cheaper than general export trade. This is because businesses don't have to pay for shipping costs when they use CBEC trade. Finally, CBEC trade gives businesses more control over their exports. This is because businesses can choose to sell their products and services to any country in the world, without having to go through General export trade.
CBEC trade can be challenging to handle large orders and bulk shipments. It’s important that you consider your product's size when choosing a cross-border shipping option because these services often come at significant cost savings over traditional methods of sending out packages via air or sea freight - which means they may only make sense if there are enough units being shipped per container so demand doesn't exceed supply too greatly between countries involved in.
In conclusion, there are advantages and disadvantages to both general export trade and CBEC trade. businesses should carefully consider which type of export trade is best for them, depending on their products, services, and goals.